Automobile: PSA more profitable than ever

The French constructor PSA has made a new profit record during the announcement of its revenue for the first half of 2016. The group declared having realized a net profit of 1.21 billion euros in the first semester against 571 million a year earlier. At the same time the automobile constructor released a free cash flow of 1.8 billion euros. The car division displays an operational margin of 6.8% passing the 4 % objective over the period of 2016-2018 fixed by its strategic plan for 5 years, published in April. At Faurecia (where PSA has 46% of shares), this margin has reached 5.1%. PSA group was however affected by unfavorable evolution in the exchange rate that weighs on its results, hence the revenue of the group is at 27.78 billion euros in the first semester against 28.03 billion euros during the same period in 2015, that is a decrease of 0.9%due to exchange rates. In constant rate, the revenue increased by 2.4%.